August 22, 2017 / 7:38 AM / 3 years ago

METALS-London copper hits 3-yr high as miners rally on strong results

 (Updates prices)
    By Melanie Burton
    MELBOURNE, Aug 22 (Reuters) - London copper rose to a fresh
three-year high on Tuesday after a string of results from mining
companies buoyed sentiment towards the sector, which also found
wider support from robust gains in steel material prices in
    "The wider sector continues to benefit from an increasingly
positive sentiment as economic growth betters expectations amid
a (broadly) weaker USD," said ANZ in a report.
    The dollar inched higher against a basket of currencies on
Tuesday, with traders focusing on the annual central banking
conference in Jackson Hole this week for insights into the
outlook for monetary policy.
    * LONDON COPPER: London Metal Exchange copper struck
$6,642.50 a tonne, the highest since Nov 2014, before trading at
$6,622 a tonne by 0712 GMT, a gain of 0.6 percent. It gained 1.5
percent in the previous session.
    * SHANGHAI COPPER: Shanghai Futures Exchange copper
rallied 1.9 percent to 52,190 yuan ($7,841) having struck its
strongest since March 2013 at 52,210 yuan. 
    * OTHER METALS: ShFE nickel finished up 2.9
percent, while zinc and lead trimmed early
losses to end flat and 1.4 percent higher, respectively. 
    * ANTOFAGASTA: Chilean miner Antofagasta raised its
dividend as a rally in copper price lifted its first-half
earnings, the company said on Tuesday, allowing it to reiterate
its annual target.
    * BHP: BHP Billiton BHP.AX, the world's largest miner,
reported a surge in underlying full-year profits on Tuesday and
said it would exit its underperforming U.S. shale oil and gas
business, pleasing disgruntled shareholders who had called for a
    * CHINA STEEL: China's steel sector offered some support,
with rebar up 0.5 percent and Dalian iron ore
ending 4.2 percent higher. 
    * PRICE OUTLOOK: "Maybe we have seen the highs of this year,
prices could consolidate a bit towards Q4," said one trader in
Singapore. "I think medium term is still bullish on commodities
(but) I am not too bullish for the short term. (Still), not a
good time to short, even though looks high now." 
    * CHINA DEBT: Rising corporate profits are providing Chinese
policymakers with room to do more to tackle the country's
growing debt problems without inflicting major damage on the
    * SHANGHAI FEES: The ShFE said on Monday it would adjust
transaction fees for zinc futures for delivery in October and
November and would limit the volumes non-members could trade
each day from Aug. 23.
    * MINMETALS: China Minmetals Corp (CHMIN.UL) plans to invest
10 billion yuan ($1.50 billion) to upgrade its copper, lead and
zinc smelting facilities Hunan province, a spokesman confirmed
on Monday, after a recent rebuke from the Ministry of
Environmental Protection (MEP).
    * COMING UP: U.S. Home prices (FHFA) for Jun at 1300 GMT
 BASE METALS PRICES                   0533 GMT          
 Three month LME copper                             6592
 Most active ShFE copper                           51750
 Three month LME aluminium                        2075.5
 Most active ShFE aluminium                        16375
 Three month LME zinc                               3122
 Most active ShFE zinc                             26180
 Three month LME lead                             2343.5
 Most active ShFE lead                             19290
 Three month LME nickel                            11335
 Most active ShFE nickel                           91890
 Three month LME tin                               20435
 Most active ShFE tin                             144170
 BASE METALS ARBITRAGE                                  
 LME/SHFE COPPER                LMESHFCUc3        575.76
 LME/SHFE ALUMINIUM             LMESHFALc3        327.08
 LME/SHFE ZINC                  LMESHFZNc3        1283.3
 LME/SHFE LEAD                  LMESHFPBc3        352.61
 LME/SHFE NICKEL                LMESHFNIc3       1537.92

($1 = 6.6579 Chinese yuan renminbi)

 (Reporting by Melanie Burton; Editing by Richard Pullin and
Vyas Mohan)
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